Deductions & credits

If they treat the Dependent Care Tax Credit the same in tax year 2021 as they have in recent prior years, you are not allowed to "double" dip in the way you are portraying. Even though you have $24K in expenses and set aside $7K in the FSA, you are only allowed to claim $9K (=16,000-7,000 FSA), eligible for reimbursement up to 50%.